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STREET LIGHTING PROJECTS November 2012. OPTIMA ENERGIAS HISTORY 2.

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Presentation on theme: "STREET LIGHTING PROJECTS November 2012. OPTIMA ENERGIAS HISTORY 2."— Presentation transcript:

1 STREET LIGHTING PROJECTS November 2012

2 OPTIMA ENERGIAS HISTORY 2

3 It is a Mexican company founded in 1988 as CELSOL SA de CV, dedicated in its first years to develop and manufacture solar systems. 19881998 200520102011 OPTIMA ENERGIAS HISTORY 3 Energy Efficiency projects under Performance Contracting scheme. Performance Contracting its a model that allows the implementation of energy efficiency projects to our costumers without initial investment and obtaining enough savings to cover the total project investment and generate cash inflows for the life of the project. Joined the Endeavor Entrepreneur Group and institutionalized the Advisory Council Restructured the Corporate Governance and integrated two Independent Board Members Establishing a financial vehicle to provide energy efficient solutions in the municipalities. An Association is signed with the US Fund True North Venture Partners. Optima Energy has successfully completed over 200 energy saving Turn-Key projects. Its the first company in Mexico to perform this type of projects under Performance Contracting scheme.

4 4 WHO WE ARE? Optima Energía is a financial vehicle that delivers energy efficiency solutions to hotels, industrial businesses and Municipalities in Mexico. The company has completed over 120 projects totaling over US$200 million, making it the largest energy efficiency business in the Latin America region. Optima Energia provides solutions under an ESCO model through which : Responsible for: 100% of the investment needed, savings generation and maintenance during the life of the project, Responsible for: 100% of the investment needed, savings generation and maintenance during the life of the project, Our Clients- with out the need of initial investment- will be able to develop their energy efficiency projects, with NO financial or technical risk, Our Clients- with out the need of initial investment- will be able to develop their energy efficiency projects, with NO financial or technical risk, All OEs Clients will generate positive cash flow since the first month of operation and during the life of the contract. All OEs Clients will generate positive cash flow since the first month of operation and during the life of the contract.

5 5 Many areas in Latin America are characterized by high electricity and water costs and under- developed infrastructures for energy, water and waste. In many cases these basic services are provided by inefficiently run government-owned entities. OEs Low Carbon Emission Cities initiative creates a real possibility for sustainable projects to be developed massively. A great opportunity exists to enable Municipalities and industrial consumers to meet their energy, water and waste management needs with on-site solutions that are lower in cost, more reliable and more environmentally friendly than the existing centralized services. OE is positioned to offer these types of on-site solutions, and thereby lead the development of this new paradigm in the region. WHO WE ARE

6 Throughout our history, we have successfully received six entrepreneur capital rounds: NAFIN North American Environmental Fund (NAEF) Fondelec Latinamerican Clean Energy Fund (FLACES) NAFIN-CONACYT SINCA INBURSA TRUE NORTH V.P. 1994 2001 1995200320042006200720111999 INTITUTIONAL CAPITAL HISTORY 6

7 FINANCING EXPERIENCE 7 Our projects have been supported by the Mexican Commercial Banks and International Development Banks, among others: HSBC Santander Grupo Financiero Inbursa BBVA Banorte B X + Banregio Cat Financial Exim Bank IFC IIC (IDB)

8 BUSINESS SCHEME Performance Contracting 8 Allow our clients, without initial investment, the possibility to implement energy efficiency projects. The savings will be enough to cover the total project investment and generate cash inflows for the life of the project.

9 9 SELF-FINANCIABLE AND WITH GREAT BENEFITS

10 10 SELF-FINANCIABLE AND WITH GREAT BENEFITS

11 11 SELF-FINANCIABLE AND WITH GREAT BENEFITS

12 12 BUSINESS SCHEME Performance Contracting

13 13 COMPARISON OPTIMA ENERGÍA VS. TRADITIONAL BUYER-SELLER Optima EnergíaBuy - Sell Does not require initial investment. Being a PRODUCTIVE INVESTMENT which is covered by savings generated by itself, it does not reflect as debt for the Municipality. Initial investment is required or debt is generated for the Municipality, since it has the direct responsibiity for the credit. A 10 year warranty is offered on lamps and ballasts.No long term guarantee offered, the longest is of 5 years, when the product isnt even paid off. A technical and financial analysis is performed, which results in a real savings guarantee for the contracted period. There is no savings committment; calculation is realized without a detailed study for the Municipality. The project is includes installation, manpower, financing and guarantees. There is no responsibility over lamp installation, which can lead to a guarantee problem. We offer a monitoring and control system which generates great additional benefits, both service and financialwise. Only lamps are offered.

14 MARKETS IN ENERGY EFFICIENCY SAVINGS 14 Currently, our offer is focused on street lighting, but part of our strategy is the analysis of new technologies that complement our solution, to a full sustainable offer: "Low Emission Carbon Cities Efficient use of electricity, fuel and water, in the hotel sector and in other industries. We currently have over 120 projects developed. PUBLIC PRIVATE

15 15 We have 4 years working with OEs energy savings projects. We widely recommend them as a serious company to work with." Ing. Lucio López Engineering Director Hotel The Ritz Carlton Cancun

16 16 "Over the years, we have not had any complaints and think that their work can be described as outstanding Ing. Miguel Ángel Inzunza Castro Maintenance Manager Temptation Resort Spa

17 17 "I would highly recommend Optima Energy, who provide maintenance service of an integrated project teams installed energy saving in this hotel for 8 years, during this time has achieved an excellent working relationship. Do not hesitate to continue working with them and have a new energy saving project. " Ing. José Tovar Maintenance Manager Hotel Omni Cancún

18 18 We have achieved a working relationship with personal attention and expectations according to the proposals. Besides being leaders in the savings and energy efficiency as a company, OE is concerned that their clients achieve the desired level of satisfaction, for this reason it is important to have your support as business partners Ing. Raúl Marín Burgos Gerente de Mantenimiento Hotel Holiday Inn Cancún Arenas

19 STREET LIGHTING 19

20 WORLD TREND/ SUSTAINABLE MUNICIPALITIES

21 LOS ANGELES Year: 2009 - 2013 Luminaries: 140,000 New technology: LED SEATTLE Year: 2010 - 2014 Luminaries: 45,969 New technology: LED NEW JERSEY Year: 2009 Luminaries: 150,000 New technology: Magnetic Induction SAN DIEGO Year: 2011 Luminaries: 38,700 luminaries New technology: Magnetic Induction LOS ÁNGELES SAN DIEGO SEATTLE NEW JERSEY

22 Yellow vs. White HIGH TECH

23 In Municipalities of Mexico, it is the Biggest expense after payroll Service that generates more complaints from citizens, second only to insecurity STREET LIGHTING 23 2nd

24 These projects dont require initial investment, dont generate debt and reduce in average: POTENTIAL IN MEXICO There are a total of: 24 7.7 Million lamps 50% Electrical energy consumption 2 Millions Tons of CO 2 particles per year

25 OES SOLUTION 25

26 26 ECONOMIC GUARRANTIES SOCIAL No initial Investment Additional cash for Mayors to develop new projects Our project does not generate debt to Municipalities First payment will initiate after 100% of the installation is completed Technology guarantee for the life of the contract 48 hrs. delivery for guarantees Efficiency and saving guarantee Increasing our security High sustainable and environmental impact Reduces vehicle accidents, better visibility Increases the perception of a better and safer city OEs Solution

27 1. Lack of capital ($) to develop new projects 2. High energy costs 3. Municipalities cant take more debt 4. Fear to risk political capital 5. Lack of knowledge for development of new projects (technical, financial and legal) 6. Lack of time (less than 2.5 years) to transform the proposals into real solutions. 7. Social pressure by the need for better street lighting service. Challenges faced by Municipalities Optima Energía Solutions OEs Vehicle 1. Turnkey projects that require NO initial investment 2. Financing for implementation of projects that are paid from the savings generated (productive projects) 3. The municipality doesnt generate debt 4. Technical guarantees that ensure long term viability of the project and protects the Municipality for future contingencies 5. Legal advice to establish process by the regulations that allow multi annual contracts 6. Technical assistance for the replacement of power to maintain or improve the level of illumination of the Municipality, National utility (CFE) support for the recognition of the savings 7. Cutting edge technologies for the development of sustainable projects OE: FINANCIAL VEHICLE 27

28 28 OPTIMA ENERGÍA in Cajeme, Sonora 250 W HPS 139 W LED BEFOREAFTER

29 29 Street Ligthing in Cajeme, Sonora OPTIMA ENERGÍA in Cajeme, Sonora

30 30 Street Lighting in Linares, Nuevo León

31 31 SUCCESS STORIES ACAPULCO, GUERRERO Savings51% Lamps44,490 MW/ Year10,500 CO 2 Savings6,973 Ton per year Savings55% Lamps6,575 MW/ Year2,000 CO 2 Savings1,580 Ton per year LINARES, NUEVO LEÓN Savings56% Lamps9,863 MW/ Year3,297 CO 2 Savings1,770 Ton per year CADEREYTA, NUEVO LEÓN CADEREYTA LINARES ACAPULCO

32 32 TESTIMONIALS

33 STREET LIGHTING PROJECTS I feel more secure and my children can play at night again. Armandina Farías Neighbor from Puerto Marquez

34 STREET LIGHTING PROJECTS It looks great, we are very grateful with this project. Salvador Guevara President of the Union of Waiters, Cooks and Tourism Services of Puerto Marquez

35 35 WHY OPTIMA ENERGÍA? We are a company with over 25 years of experience in energy efficiency projects. Leader in energy services in energy services in Latinamerica. Certified by FIDE and recognized by CONUEE We have conducted over 300 energy efficiency studies. We execute a complete energy consumption study for the Municipality, in order to offer the best solution with the best technology according to its specific needs. Only company that has implemented 3 street lighting projects in Mexico with a results based program. We are the best option because:

36 THANK YOU 36 P: +(5281) 80 000 6113 ablanco@optimaenergia.com Oficinas en el Parque Blvd. Diaz Ordaz No.140 Piso 21 Torre 2 Col. Santa Maria, Monterrey, N.L.


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